Good that the new German nationalism
http://www.spiegel.de/...
is finally being discussed at German newspapers because most Germans don't realize how serious the situation has become.
I am afraid what we see in Germany is the rise of nationalism, economic nationalism that is destroying Europe. At the core of this is Germany's unwillingness to reduce its dependence on export, the unwillingness to increase wages to allow other nations to make their products more competitive. Moreover, the German de facto management of the Euro, the enforcement of its zero inflation and austerity policies in combination, while good for German banks, are a deadly mix for the Southern economies. In addition, what makes it so dangerous is that many Germans seem to believe that they are better. And that others are lazy. Debt and guilt are the same word in German. Thus, the discussion of Greece and other Southern economies are deeply moralized. It should be terrifying for any European to see the rise of German national superiority feeling again that was at the very heart of Nazi Germany.
How will this end? I must say that expelling Germany from the Euro zone if they don't increase their wages, adjust their labor costs, increase domestic consumption to reduce their dependence on export, appears a dramatic but effective solution. European countries should consider this possibility in negotiations with Germany's iron lady Angela Merkel. Over night an independent Germany currency would jump and make its exports more expensive thereby giving other nations a chance. Only by participating in the Euro has Germany been able to make its currency artificially low. But would an Europe without Germany be viable?
The best and preferred solution would be an united Europe with a strong Germany, but deeper integration that redistributes profits as well as debt. The chance to get there still exists, but it requires a dramatic change in the conversation in Germany as well as Europe.
More Reading:
http://www.cnbc.com/....
https://fsaraceno.wordpress.com/...
http://www.nytimes.com/...
http://www.nytimes.com/...